Rabobank lowers its global pricing forecast for grains and oilseeds in 2015
Rabobank, a reputable investment bank, in its current price forecast emphasized existing preconditions for the continuation of the decline in global prices for wheat. The Bank experts lowered the forecast for pricing of wheat and corn futures at the CBOT in Chicago, noting that the situation on grain markets is becoming increasingly bearish in nature.
Agro-meteorological conditions in the North American prairies, favorable for sowing of spring crops, as well as vegetation of winter crops, do not give any reason for the growth of tension on the market. Export demand for US grain, due to its low price competitiveness on global commodity markets, caused by a strong US dollar index, in turn, is preserved consistently low, which also does not contribute to the strengthening of prices. Good harvest is also expected in the European Union. And, only in the countries of Black Sea region there are certain preconditions that allow fears for the fate of the coming harvest. However, a definitive conclusions about the condition of global grain market can be done only by May- as such conditions will largely be determined by the weather that will be established in regions of intensive grain cultivation in the next six weeks.
So far, the experts lowered their forecast indicative of futures prices for wheat SRW type by the end of this year at $7.35/t to $198.42/t, while price forecast for French milling wheat in Paris- to €190/t. Futures prices for soybeans, the Bank experts believe, will amount to less than $330/ton.